A DISSERTATION ON “A STUDY ON CUSTOMER’S PERCEPTION, ATTITUDE AND AWARENESS TOWARDS GREEN MARKETING” SUBMITTED TO
SAVITRIBAI PHULE PUNE UNIVERSITY, PUNE IN THE PARTIAL FULFILLMENT OF THE REQUIREMENT OF MASTER OF BUSINESS ADMINISTRATION (M.B.A.) UNDER THE GUIDANCE OF Dr. A. R. Jaswal -SUBMITTED BYMr. Yash Avinash Khambekar SUBMITTED TO
S.R.E.S’s Sanjivani College of Engineering Department of MBA, Kopargaon (2017-2019)
SANJIVANI COLLEGE OF ENGINEERING,
DEPT. Of MBA
Certificate This is to certify that Mr. Yash Avinash Khambekar has submitted a dissertation project on “A Study on Customer’s Perception, Attitude and Awareness towards Green Marketing” to Savitribai Phule Pune University, Pune for the partial fulfilment of Master in Business Administration (M.B.A.). We further certify that to the best of our knowledge and belief, the matter presented in this project has not been submitted to any other Degree or Diploma course.
Dr. A. R. Jaswal Dr. V.R. Malkar Internal Guide Head of Department
External Examiner
DECLARATION
I undersigned hereby declare that, the Dissertation titled “A Study on Customer’s Perception, Attitude and Awareness towards Green Marketing” is executed as per the course requirement of two year full time MBA program of Savitribai Phule Pune University.
Place: Date:
Yash Avinash Khambekar MBA-2017-19
INDEX Sr.No
Particular
Page No
Research Proposal 1
INTRODUCTION 1.1
Background of the topic
1.2
Background of the / study
2
Review of Literature & Research Methodology 2.1
Review of Literature
2.2
Objectives and Statement of Hypothesis if Any
2.3
Research Methodology
2.3.1
Research Design
2.3.2
Type Of Data-Primary Data/Secondary Data
2.3.3
Sample Design
2.3.4
Population
2.3.5
Sample Size
2.3.6
Sampling Method
2.3.7
Instrument/S For Data Collection
2.3.8
Data- Analysis Tools & Techniques
2.3.9
Scope and Limitations Of The Study
3
Data Analysis
4
Hypothesis Testing if Applicable
5
Conclusion
6
Suggestions
7
Learning‘s from Dissertation
8
Bibliography
and Findings
9
Appendix
A Research Proposal ON “A Study on Customer’s Perception, Attitude and Awareness towards Green Marketing” SUBMITTED TO
SAVITRIBAI PHULE PUNE UNIVERSITY, PUNE
IN THE PARTIAL FULFILLMENT OF SEMESTER-IV FOR THE REQUIREMENT OF MASTER OF BUSINESS ADMINISTRATION (M.B.A.)
UNDER THE GUIDANCE OF (Dr.A.R.Jaswal) -SUBMITTED BY(Yash Khambekar)
S.R.E.S. Sanjivani College of Engineering Department of MBA, Kopargaon 2017-2019
A Study on Customer’s Perception, Attitude and Awareness towards Green Marketing Introduction 1.1 Background of the Study Businesses need to constantly assess the latest and most attractive marketing trends. Marketing trends can be found out by continually researching about the changes in consumer behaviour in the marketplace. By identifying the changes in the consumer behavior, the businesses can modify their offering to the consumers. Consumers today are more concerned about environmental degradation and negative impact of their uses of product and services on environment. The reason for this concern could be visible climatic changes, global warming and increasing air and water pollution. Thus using green marketing by the organizations not only provides an opportunity to meet consumer expectations and address their environmental concerns, but also to gain a competitive advantage and a strong consumer base. Green marketing is also termed as environmental marketing or ecological marketing. According to American Marketing Association, marketing of products that are presumed to be environmentally safe is called as Green Marketing. Thus wide range of activities are covered under green marketing, which includes modifying the product, making changes in the production process and packaging, as well as modifying advertising or removing any activity that impacts the environment in negative way. Today, the Earth faces more environmental issues than ever before, hence it is imperative for companies to make and market themselves as environment friendly. Green marketing is emerging as a popular promotional strategy owing to increased consumer awareness and concerns. The concept of green or ecological marketing calls upon businesses to follow ethical and green practices while dealing with customers, suppliers, dealers, and employees. Companies have started marketing themselves as green companies. Even the Public Sector Units and state governments are now paying a lot of attention towards environmental issues such as global warming, pollution, or water contamination and have started taking steps to prevent environmental pollution. In a recent survey conducted by National Geographic Society and the international polling firm Globescan (2010) to determine consumers’ green attitude called “Consumer Greendex”, the top scoring consumers were in the developing economies of India, Brazil and China while industrialized countries ranked at the bottom. Consumers showing the largest increase in environmentally sustainable behavior were in India, Russia and the United States (Howe et al., 2010). A company to be successful in green marketing requires to be committed to operate in environmentally friendly ways.
Green Products and marketing practices
Actually there is no consensus on what exactly is green. There is no accepted definition of green product. However based on different definitions of green marketing, some common characteristics of products generally accepted as green, including the products are: 1. Energy efficient (both in use and in production). 2. Water efficient (both in use and in production). 3. Low emitting (low on hazardous emissions). 4. Safe and/or healthy products. 5. Recyclable and/or with recycled content 6. Durable (long-lasting). 7. Biodegradable. 8. Renewable. 9. Reused products. 10. Third party certified to public or transport standard (e.g., organic, certified wood) 11. Locally produced.
Review of Literature & Research Methodology and Plan of Study
2.1 Review of Literature Green marketing came into prominence in the late 1980s and early 1990s. The first book titled Ecological Marketing was the outcome of first workshop on “Ecological Marketing”, held by American Marketing Association (AMA) in 1975. Green marketing acquired an eminent status since early 1990s. There has been occurring about green consumers and green consumerism in 1970s and 1980s. Henion and Kinnear (1976) defined green consumers as environmentally conscious consumers while Antil (1984) described green consumerism as a specific type of socially conscious consumer behaviour with prime focus on protection of environment. Green consumerism was described as a form of “pro-social” consumer behavior (Weiner and Doescher, 1991). Michael Polonsky (1994) defined “green marketing as the marketing that consists of all activities designed to generate and facilitate any exchanges intended to satisfy human needs or wants, such that the satisfaction of these needs and wants occurs, with minimal detrimental impact on the natural environment.” Cherian and Jacob (2012) found that consumers lack green knowledge and because of this low awareness, organizations are still not focusing towards development of green products. Braimah and Tweneboah-Koduah (2011) studied Ghanaian consumers and have found low level of awareness towards green marketing issues which affected that purchase decision of the consumers. Price of green products was also found to be one of the factor that influence the purchase of green products. However, it was found that young consumers are more likely to be influenced by green issues.
There are several issues and challenges identified by various researchers with respect to Green Marketing (Welling and Chavan, 2010). Practicing green marketing initially may prove to be a costly affair as it encourages green products/services, green technology (procuring new technology or modification of existing technology), green power/energy which requires a lot of money to be spent on R&D programs. High investment is required in marketing promotions to create awareness regarding green products and their uses. Many customers may not be willing to pay a premium for green products which may affect the sales of the company. It requires the companies to extensively communicate the presence and benefits of green marketing to the customers by means of various tools available for integrated marketing communication. Eco-labeling could be a good way to convince the customers regarding green products. Consumers might be willing to pay premium price if they see additional benefit (such as quality, environmentally safe product, fuel-efficient vehicles, and non-hazardous products) attached with the product. Green Marketing can help organizations to gain a competitive advantage and a strong consumer base. (Renfro L A, 2010). Antonio et al (2009) suggested that due to environmental consciousness that has evolved over time, studies on green consumerism will be the main focus point in future leading to identifying the consumer attitudes, behaviors and intentions. Consumers are substantially aware about green products; however applying green marketing practices in business operations is not an easy task (Juwaheer, 2005). Jacquelyn Ottman, (1998) suggests that from an organizational standpoint, all aspects of marketing including new product development and communications should be integrated with environmental considerations. This holistic view of Green Marketing suggests that not only the suppliers and retailers, but the new stakeholders including educators, community members, regulators, and NGOs should also be taken into purview. Environmental issues should not be compromised to satisfy primary customer needs. Organization operating green practices in their processes and products is considered as environmentally friendly by the consumers and they prefer to purchase the products of the organization that are marketing themselves as green organizations. Mintel (1995) found a significant gap between consumers concern and actual green purchasing. It is found that still there are considerable barriers towards the diffusion of more ecologically oriented consumption styles. Firms are also forced to become more socially responsible due to the laws laid by the government towards the protection of the environment. Firms are also pressurized by the environmental activities adapted by competitors that demand the firms to change their marketing activities to environmental marketing activities. One of the factors identified that affects the purchase of green product is its high price in comparison with traditional product. Price of the product can be reduced by properly designed environmental standards. Environmental standards can trigger innovations that lower the cost of the product or improve its value. Such innovation will allow the companies to use a range of inputs more productively-from raw materials to energy to labor – thus offsetting the cost of improving environmental impact and hence enhanced resource productivity will make companies more competitive. Innovation will play a lead role in sustainable development for the companies to
be competitive and resisting innovations will lead to loss of competitiveness in today’s global economy (Michael Porter and Claas van der Linder, 1995). According to Michael J Polonsky, environmental marketing has been perceived as an opportunity by the organizations to achieve their objectives (stated by Keller 1987, Shearer 1990). It was believed that organizations have moral obligation to serve the society in more environmental friendly way (Davis 1992, Freeman and Liedtka 1991, Keller 1987, Shearer 1990).
2.2 Need for the Study Green marketing has now evolved as one of the major area of interest for marketers as it may provide competitive advantages. However it requires investment in terms of technology enhancement, process modification, communicating benefits to customers etc. Many of the companies in India have now started marketing themselves as green organizations due to certain government regulations and shift in the preference of the consumers worldwide. However, not much research with respect to green marketing has been done in India and there is question about the awareness of green products among consumers. The attitude of Indian consumers towards green products and the relationship between the attitude and behavior is also questionable. As green marketing is different from the marketing in traditional way, marketers need to know the factors that persuade the consumer to buy the green products. This study aims to resolve the research question that what factors influence the consumer persuasion to buy the green product or not. 2.3 Objectives
To find out the customer’s attitude and perception towards green marketing. To investigate the level of awareness of consumers about green products and practices. To identify the brands, consumer associate with green marketing practices. To identify the factors that influences the customer persuasion to buy green products. To analyses the level of satisfaction of green product customers through 5 point scaling techniques.
2.4 Research Methodology Research design Research design is defined as a framework of methods and techniques chosen by a researcher to combine various components of research in a reasonably logical manner so that the research problem is efficiently handled. It provides insights about “how” to conduct research using a particular methodology Research design method used: Descriptive PRIMARY DATA:“Primary data is the data observed or collected directly from first-hand experience.” COLLECTION OF PRIMARY DATA:-
Primary data is the present study, collected first hand from the target segment through questionnaire i.e. the customers or common people. For collecting primary data I have used Questionnaire, Survey. SECONDARY DATA:“Published data and the data collected in the past or other parties is Called secondary data” COLLECTION OF SECONDARY DATA:Secondary data means which is already available or published. I have collected secondary data from Internet (related websites), Research Papers and Books etc.
Instruments for Data Collection: Questionnaire Tools used for Data analysis: MS-Excel
Respondent A respondent is a person who replies to something, especially one supplying information for a questionnaire. In this study, respondents are the customers who are using green products.
Population All the students of Sanjivani Group of Institutes, who are studying in MBA I & II year and BBM I, II & III year. Total population is 306. To decide the population I have taken help of data given by college. Population
Total no.
%
Sample
MBA I Yr.
60
20
33
MBA II Yr.
60
20
33
BBM I Yr.
88
29
48
BBM II Yr.
74
24
40
BBM III Yr.
24
8
13
TOTAL
306
100
167
(SOURCE: DATA PROVIDED BY SANJIVANI GROUP OF INSTITUTES)
Sampling Sampling is concerned with the selection of a subset of individuals from within a statistical population to estimate characteristics of the whole population. Two advantages of sampling are that the cost is lower and data collection is faster than measuring the entire population. Sample size A sample of 167 respondents was selected for the survey according to Morgan’s Table. Sampling Method Samples can be either probability samples or non-probability samples. With probability samples each element has a known probability of being included in the sample but the nonprobability samples do not allow the researcher to determine this probability. Probability samples are those based on simple random sampling, systematic sampling, stratified sampling, cluster/area sampling whereas non-probability samples are those based on convenience sampling, judgement sampling and quota sampling techniques.
Sampling Method: - Non-Probability Sampling Sampling Technique used: - Convenience Sampling
Scope of the study Researcher is supposed to collect data only from students of Management Studies (MBA & BBA) of Sanjivani Group of Institutes which is situated in Kopargaon. Researcher will collect primary data in the month of February 2019 only.
Limitations
Duration given for completion of project it is not sufficient for the complete analysis and study. It is very difficult to find out the people, who are aware about green products and green marketing, The sources related with secondary data about this problem are limited.
2.5 Plan of Study S. N.
Main tasks to be completed
1
Background reading about Follow interesting trails, until one subject & searching of leads to a provisional research 20-Jan-18 relevant topic/s question or thesis
2
Finalize topic & title
3
Literature Review/ search – what has already been written about your topic? Seek out up to-date resources, asking for help from library staff
4
Dissertation preparation Presentation submission
5
Data & collection
6
Data & evidences analysis Begin to analyze evidence or data
7
Interim Report Supervisor
8
Complete Draft of thesis
9
Final Submission
02-Mar-18
10
Presentation & Viva-Voce
09-Mar-18
Proposal
Consult your supervisor & take 27-Jan-18 approval Investigate methodological issues, implications of particular methods 02-Feb-18 and ethical issues. (Brief annotated bibliography )
Overview of design of dissertation & plan approval from your supervisor 09-Feb-18 & & HOD
evidences Begin to conduct your research and 16-Feb-18 gather evidence or data
to Interim Report & presentation Draft finalization
2.6 Chapter Scheme Chapter 1: Introduction Chapter 2: Review of Literature and RM Chapter 3: Data Analysis Chapter 4: Finding Chapter 5: Conclusion
End Date
23-Feb-18 26-Feb-18 28-Feb-18
Chapter 6: Suggestions Chapter 7: Learnings from Dissertation Chapter 8: Appendices Bibliography Questionnaire
Conclusion Green marketing is a tool for protecting the environment for the future generation. Now this is the right time to select “Green Marketing” globally. It will come with drastic change in the world of business if all nations will make strict roles because green marketing is essential to save world from pollution. The study has implications for marketers as well as consumers and makes a good case for start of an era of green marketing in India. The study since focused on a limited geographical area has limited generalizability but provides good insights regarding behaviour of consumers towards green products.
INTRODUCTION 1.1 Background of the Topic: Businesses need to constantly assess the latest and most attractive marketing trends. Marketing trends can be found out by continually researching about the changes in consumer behavior in the marketplace. By identifying the changes in the consumer behavior, the businesses can modify their offering to the consumers. Consumers today are more concerned about environmental degradation and negative impact of their uses of product and services on environment. The reason for this concern could be visible climatic changes, global warming and increasing air and water pollution. Thus using green marketing by the organizations not only provides an opportunity to meet consumer expectations and address their environmental concerns, but also to gain a competitive advantage and a strong consumer base. Green marketing is also termed as environmental marketing or ecological marketing. According to American Marketing Association, marketing of products that are presumed to be environmentally safe is called as Green Marketing. Thus wide range of activities are covered under green marketing, which includes modifying the product, making changes in the production process and packaging, as well as modifying advertising or removing any activity that impacts the environment in negative way. Today, the Earth faces more environmental issues than ever before, hence it is imperative for companies to make and market themselves as environment friendly. Green marketing is emerging as a popular promotional strategy owing to increased consumer awareness and concerns. The concept of green or ecological marketing calls upon businesses to follow ethical and green practices while dealing with customers, suppliers, dealers, and employees. Companies have started marketing themselves as green companies. Even the Public Sector Units and state governments are now paying a lot of attention towards environmental issues such as global warming, pollution, or water contamination and have started taking steps to prevent environmental pollution. In a recent survey conducted by National Geographic Society and the international polling firm Globescan (2010) to determine consumers’ green attitude called “Consumer Greendex”, the top scoring consumers were in the developing economies of India, Brazil and China while industrialized countries ranked at the bottom. Consumers showing the largest increase in environmentally sustainable behavior were in India, Russia
and the United States (Howe et al., 2010). A company to be successful in green marketing requires to be committed to operate in environmentally friendly ways.
Green Products and marketing practices Actually there is no consensus on what exactly is green. There is no accepted definition of green product. However based on different definitions of green marketing, some common characteristics of products generally accepted as green, including the products are: 1. Energy efficient (both in use and in production). 2. Water efficient (both in use and in production). 3. Low emitting (low on hazardous emissions). 4. Safe and/or healthy products. 5. Recyclable and/or with recycled content 6. Durable (long-lasting). 7. Biodegradable. 8. Renewable. 9. Reused products. 10. Third party certified to public or transport standard (e.g., organic, certified wood) 11. Locally produced.
Many consumer durable companies are now marketing their products with Energy Star Label stating that their use will reduce the energy consumption and consumers can save a lot of money on electricity consumption over a period of time. For example, Godrej Consumer Products is marketing its product through green marketing and gives additional incentive to buyers to exchange their old products with latest green and environmental friendly products. The advertisements try to persuade the buyers to adopt a green lifestyle and contribute in development of a greener planet. NDTV a major media group promotes green values through its campaign Greenathon. NDTV Greenathon as they call it organizes various philanthropic
and social activities to raise awareness regarding environmental issues at the same time contribute to the social causes like electrification of rural areas etc. Philips is marketing its Compact Fluorescent Light (CFL) as “Marathon”, highlighting its new “super long life” and energy efficiency. Many companies are now offering more eco-friendly alternatives for their customers; re-cycled products are one of the most popular alternatives that benefit the environment. Companies are now focusing on not to use plastic bags, instead they use carry bag made up of recycled paper (for example, Titan, Tanishq have made a corporate policy that the goods will be delivered or given to customers only in the carry bags made out of recycled paper). Idea Cellular Limited also launched an advertisement stating saving trees towards their corporate social responsibility. Kansai Nerolac Paints is marketing themselves as green as they have removed hazardous heavy metals from their paints and are marketing their lead free paints in India. Dell focuses on producing green IT products under their strategy called “Go Green with Dell”. Dell products are also coming in eco-friendly packaging with a system recycling kit bundled along. They are also focusing on green innovations from data-center efficiency to the use of eco-friendly materials for everything from chassis design to product packaging. Major electronic goods manufacturing organizations are selling their products with star energy ratings that help to consume less energy. More is the star rating (maximum rating is 5 star) of the electrical/electronic appliance, less is the energy consumed. Nokia has come up with the concept of recycling of phones to save the natural resources. In 2007, IBM launched Project Big Green to help clients around the world improve the efficiency of IT and better optimized their data center resources. IBM has software and services technologies to help businesses reduce data center energy consumption and cut energy costs by more than 40 percent. Efforts are being made at government and industry level to protect environment. In India Environment Protection Act in was implemented in 1986 and Environment Audit in 1992 for the protection of the environment. New Delhi, Indian capital, was one of the most polluted cities until Supreme Court of India intervened to change to alternative fuels. In 2002, Supreme Court issued a directive to completely adopt CNG in all public transport systems to curb pollution. Many greenhouse gas reduction markets have emerged over a period of time that can catalyze projects with important local, environmental, economic, and quality-of-life benefits. Kyoto Protocol’s Clean Development Mechanism (CDM) is one of the steps towards greenhouse gas reduction. In the construction industry, builder lobby are now using
fly ash bricks to reduce soil erosion due to manufacturing of traditional bricks. They are also using solar panels to generate electricity for common passage lighting, elevators to reduce the traditional electricity consumption. Footwear Design and Development Institute (FDDI) is focusing on re-use of tyres, using unconventional methods and innovatively creating footwear and accessories from old and recycled tyres. Green products have also proven to be recession proof through the economic downturn of 2008 and 2009. According to a Datamonitor study in the first six months of 2009 there were over 500 new product launches of goods that claim themselves as eco-friendly.
EVOLUTION OF GREEN MARKETING Green marketing term was first discussed in a seminar on ―Ecological Marketing‖ organized by American Marketing Association (AMA) in 1975 and took its place in the literature. The term green marketing came into prominence in the late 1980s and early 1990s. The first wave of green marketing occurred in the 1980s. The tangible milestone for the first wave of green marketing came in the form of published books, both of which were called Green Marketing. They were by Ken Pattie (1992) in the United Kingdom and by Jacquelyn Ottman (1993) in the United States of America. According to Peattie (2001), the evolution of green marketing has three phases. First phase was termed as "Ecological" green marketing, and during this period all marketing activities were concerned to help environmental problems and provide remedies for environmental problems. Second phase was "Environmental" green marketing and the focus shifted on clean technology that involved designing of innovative new products, which take care of pollution and waste issues. Third phase was "Sustainable" green marketing. It came into prominence in the late 1990s and early 2000 concerned with developing good quality products which can meet consumers need by focusing on the quality, performance, pricing and convenience in an environment friendly way.
Characteristics of Green Products: We can define green products by following measures: 1. Products those are originally grown. 2. Products those are recyclable, reusable and biodegradable. 3. Products with natural ingredients. 4. Products containing recycled contents and non toxic chemical. 5. Products contents under approved chemicals. 6. Products that do not harm or pollute the environment. 7. Products that will not be tested on animals. 8. Products that have eco-friendly packaging i.e. reusable, refillable containers etc.
Classification of Green Product Manufacturing Companies According to Ginsberg and Bloom, Companies can be classified on the basis of utilisation of these elements companies can classify in four categories: Lean Green- 2.Defensive Green- 3. Shaded Green- 4. Extreme Green. Many Authors are defining green products by following measures: Products those are originally grown. Products with natural ingredients. Products those are recyclable, reusable and biodegradable. Products contents under approved chemical. Products containing recycled contents, non- toxic chemical. Products that do not harm or pollute the environment Products that will not tested on animals.
Global Scenario in Green Marketing The impulse to go “green” is spreading faster than morning glories. Organizations of all types are launching green campaigns-from London’s congestion charge on automobiles to WalMart stores push to sell organic food. According to a 2007 McKinney’s Survey of 7,751 people in Brazil, Canada,
China, France, Germany, India, the UK and the US, 87% consumers worry about the environmental and social impact of products they buy. But when it comes to actually buying. Green goods, words and deeds often part ways. No more than 33 % of consumers of survey are ready to buy green products or have already done so. A global Synovate survey conducted in 2007 in association with Aegis, and repeated in 2008 in association with BBC World, also found that consumer in most countries are becoming more aware and willing to act on environmental concerns. According to comprehensive global report by Global Industry Analysts Inc. of 2011, the global market of green marketing is projected to reach $3.5 trillion by the year 2017, driven by the rising awareness about environmental issues among consumers, governments and businesses. Further, 12% of the US population is identified as “True Greens” by Mintel (a market research firm), who are consumers seeking out and buying green products. Green Marketing in India In India, the concept of Green Marketing has been utilizing right from the use of biogas in the villages to using environment-friendly products like bamboo furniture, CFL, etc. In fact, the pottery made from earthenware and the use of traditional surai and matka for drinking cool water rather than the refrigerator, is another interesting example? Use of steel utensils which are reusable, rather than disposable plates, can also be viewed as a green initiative. The use of coolers rather than air conditioners goes a long way in reducing the carbon footprint. However, these traditional items seem to be gradually losing their sheen, with more and more people using modern gadgets and gizmos. According to Google Trends report 2007, on a relative basis, more searches for “green marketing” originated from India than from any other country.
EMPIRICAL CASES AND EXAMPLES OF GREEN MARKETING IN INDIA 1. Digital Tickets by Indian Railways. :- Recently IRCTC has allowed its customers to carry PNR no. of their E-Tickets on their laptop and mobiles. Customers do not need to carry the printed version of their ticket anymore. 2. No Polythene carry bags for free :-Forest & Environmental Ministry of India has ordered to retail outlets like BigBazar, More, Central, D-Mart etc that they could provide polythene carry bags to customers only if customers are ready for pay for it.
3. Green IT Project: State Bank of India:-By using eco and power friendly equipment in its 10,000 new ATMs, the banking giant has not only saved power costs and earned carbon credits, but also set the right example for others to follow. SBI is also entered into green service known as ―Green Channel Counter‖. SBI is providing many services like; paper less banking, no deposit slip, no withdrawal form, no checks,no money transactions form all these transaction are done through SBI shopping & ATM cards. State Bank of India turns to wind energy to reduce emissions. The wind project is the first step in the State Bank of India's green banking program dedicated to the reduction of its carbon footprint and promotion of energy efficient processes, especially among the bank's clients. 4. Lead Free Paints from Kansai Nerolac:- Kansai Nerolac has worked on removing hazardous heavy metals from their paints. The hazardous heavy metals like lead, mercury, chromium, arsenic and antimony can have adverse effects on humans. Lead in paints especially poses danger to human health where it can cause damage to Central Nervous System, kidney and reproductive system. Children are more prone to lead poisoning leading to lower intelligence levels and memory loss. 5. Wipro's Green Machines:-Wipro Infotech was India's first company to launch environment friendly computer peripherals. For the Indian market, Wipro has launched a new range of desktops and laptops called Wipro Green ware. These products are RoHS (Restriction of Hazardous Substances) compliant thus reducing e-waste in the environment.
1.2 Background of the study: “Green Marketing” is a newer issue in the eyes of marketers. “Green Marketing” is defined as the marketing of products that are presumed to be environmentally safe. There is a common perception among the general population that the term green marketing refers only to advertising or promoting products that possess environmental characteristics. Consumers want to do the right thing when it comes to protecting the environment and their health. Even in this economic climate, the green movement is gathering momentum, and it's hard to miss the deluge of ads introducing new green products from well-known national brands. As resources are limited and human wants are unlimited, it is important for the marketers to utilize the resources efficiently without waste as well as to achieve the organization's objective. So green marketing is inevitable.
Eco-friendly products are products that do not harm the environment, whether in their production, use or disposal. Some of these going green products when in use, help conserve energy, minimize carbon footprint or the emission of greenhouse gases, and does not lead to substantial toxicity or pollution to the environment. Other green products are biodegradable, recyclable or compostable. Hence, they do not harm the environment or upset the ecological balance when they are disposed off. Look at the world‘s consumption rate today. Things are being produced, used and then discarded at a super rapid pace. If we make no attempts to switch to green alternatives now, in no time to come, we will be surrounded by the pollution and toxins caused by producing, using and disposing these non-green items. How you consume, use, and purchase determines what‘s manufactured. Remember learning about supply and demand in elementary school? In your purchasing, from groceries to cars, from cat litter to homes, remember that everything you buy has a price - not just in terms of what it costs you, but what it costs the environment to be manufactured. Buying only eco friendly products and services is our trump card for controlling global warming, and for giving the planet a chance to heal. If we focus our purchasing power on buying products made from recycled paper for instance, the demand for those products will escalate…actually promoting businesses producing products made from recycled paper, and forcing other companies to reconsider making their less environmentally sound products. Buying an eco friendly product from eco-friendly companies will force others to compete for our business by also making products from recycled paper. It seems that we have forgotten somewhere along the way that we, the consumers, actually have the power over what is made and purchased. We have allowed big business media to drive our purchasing…but that can no longer be the standard to which we hold ourselves. Demand eco friendly products and services…do your part to save the planet. Don‘t be part of the herd. Demand what you know is best for you, your family, the economy and the planet. Choose the products you buy wisely and with a firm commitment to buying green, local and sustainable. You‘ll feel better…we‘ll all feel better, and our planet can begin to heal. We hope our eco products definition has made clear what to look for in a green product. Earth friendly simply means being friendly to nature. Earth is the only planet where human beings can exist. We need to be eco friendly to save our planet Earth and environment as well as making it a better place to live in. Million tons of waste is produced in the world every day. If not much we can make little efforts to help planet Earth. A person being eco friendly not only
helps his surrounding to be less harmful, but also helps the fellow human beings and the animals around him. One should know the importance of being nature friendly. Nowadays, eco friendly products are readily available; one can be earth friendly by using these products and by using organic chemicals instead of harsh ones for their purposes. To be very precise, being earth friendly or eco friendly has become a necessity, that everybody should take part in. Green marketing is the marketing of products that are presumed to be environmentally preferable to others. Thus green marketing incorporates a broad range of activities, including product modification, changes to the production process, sustainable packaging as well as modifying advertising. Yet defining green marketing is not a simple task where several meanings intersect and contradict each other; an example of this will be the existence of varying social, environmental and retail definitions attached to this term. Green, environmental and eco-marketing are part of the new marketing approaches which do not just refocus, adjust or enhance existing marketing thinking and practice, but seek to challenge those approaches and provide a substantially different perspective. In more detail green, environmental and eco-marketing belong to the group of approaches which seek to address the lack of fit between marketing as it is currently practiced and the ecological and social realities of the wider marketing environment. The past decades has shown that harnessing consumer power to effect positive environmental change is far easier said than done. The socalled "green consumer" movements in the U.S. and other countries have struggled to reach critical mass and to remain in the forefront of shoppers' minds. While public opinion polls taken since the late 1980s have shown consistently that a significant percentage of consumers in the U.S. and elsewhere profess a strong willingness to favour environmentally conscious products and companies, consumers' efforts to do so in real life have remained sketchy at best. One of green marketing's challenges is the lack of standards or public consensus about what constitutes "green," according to Joel Makower, a writer on green marketing.[ In essence, there is no definition of "how good is good enough" when it comes to a product or company making green marketing claims. This lack of consensus—by consumers, marketers, activists, regulators, and influential people—has slowed the growth of green products, says Makower, because companies are often reluctant to promote their green attributes, and consumers are often skeptical about claims. Despite these challenges, green marketing has continued to gain adherents, particularly in light of growing global concern about climate change. This concern has led more companies
to advertise their commitment to reduce their climate impacts, and the effect this is having on their products and services. Need for the Study Green marketing has now evolved as one of the major area of interest for marketers as it may provide competitive advantages. However it requires investment in terms of technology enhancement, process modification, communicating benefits to customers etc. Many of the companies in India have now started marketing themselves as green organizations due to certain government regulations and shift in the preference of the consumers worldwide. However, not much research with respect to green marketing has been done in India and there is question about the awareness of green products among consumers. The attitude of Indian consumers towards green products and the relationship between the attitude and behavior is also questionable. As green marketing is different from the marketing in traditional way, marketers need to know the factors that persuade the consumer to buy the green products. This study aims to resolve the research question that what factors influence the consumer persuasion to buy the green product or not.
LITERATURE REVIEW & RESEARCH METHODOLOGY 2.1 Review of Literature Over the last 50 years, since evolution, Green Marketing has witnessed many success and pitfalls in both academics and markets. It has evolved from the term marketing of environmental friendly products to marketing of green products to green marketing. To get an in-depth insight into the topic of green marketing an extensive literature review is done on e-libraries like proquest and ebsco, departmental library, journals, books etc. A search on Ebsco on the topic ‘green marketing’ had generated 239 peer-reviewed full text papers and a search on proquest generated 171 results. The earliest article found in the search result dated back to 1971 in Journal of Marketing which shows that in early 70’s academicians started thinking about environment and social responsibility. Though many studies are there but very few work has been done in India on Green marketing. Green marketing came into prominence in the late 1980s and early 1990s. The first book titled Ecological Marketing was the outcome of first workshop on “Ecological Marketing”, held by American Marketing Association (AMA) in 1975. Green marketing acquired an eminent status since early 1990s. There has been occurring about green consumers and green consumerism in 1970s and 1980s. Henion and Kinnear (1976) defined green consumers as environmentally conscious consumers while Antil (1984) described green consumerism as a
specific type of socially conscious consumer behaviour with prime focus on protection of environment. Green consumerism was described as a form of “pro-social” consumer behavior (Weiner and Doescher, 1991). Michael Polonsky (1994) defined “green marketing as the marketing that consists of all activities designed to generate and facilitate any exchanges intended to satisfy human needs or wants, such that the satisfaction of these needs and wants occurs, with minimal detrimental impact on the natural environment.” Cherian and Jacob (2012) found that consumers lack green knowledge and because of this low awareness, organizations are still not focusing towards development of green products. According to Joel Makower (cited by Shafaat & Sultan, 2012), challenges faced by green marketer also include the lack of standards and common consensus among the public about what actually constitutes “green”. Despite these challenges, green marketing continues to gain popularity, particularly in light of growing global concern about climate change. Companies are coming forward to showcase their commitments to reduce adverse climate impacts of their products and services. Green marketing can play an important role in sustainable development so firms must adapt innovative methods to sustain itself in the competitive environment. Braimah and Tweneboah-Koduah (2011) studied Ghanaian consumers and have found low level of awareness towards green marketing issues which affected that purchase decision of the consumers. Price of green products was also found to be one of the factor that influence the purchase of green products. However, it was found that young consumers are more likely to be influenced by green issues. There are several issues and challenges identified by various researchers with respect to Green Marketing (Welling and Chavan, 2010). Practicing green marketing initially may prove to be a costly affair as it encourages green products/services, green technology (procuring new technology or modification of existing technology), green power/energy which requires a lot of money to be spent on R&D programs. High investment is required in marketing promotions to create awareness regarding green products and their uses. Many customers may not be willing to pay a premium for green products which may affect the sales of the company. It requires the companies to extensively communicate the presence and benefits of green marketing to the customers by means of various tools available for integrated marketing communication. Eco-labeling could be a good way to convince the customers regarding green products. Consumers might be willing to pay premium price if
they see additional benefit (such as quality, environmentally safe product, fuel-efficient vehicles, and non-hazardous products) attached with the product. Green Marketing can help organizations to gain a competitive advantage and a strong consumer base. (Renfro L A, 2010). Antonio et al (2009) suggested that due to environmental consciousness that has evolved over time, studies on green consumerism will be the main focus point in future leading to identifying the consumer attitudes, behaviors and intentions. Brahma, M. & Dande, R. (2008), The Economic Times, Mumbai, had an article which stated that, Green Ventures India is a subsidiary of New York based asset management firm Green Ventures International. The latter recently announced a $300 million India focused fund aimed at renewable energy products and supporting trading in carbon credits. Miller (2008) claims that green marketing is a concept that, when implemented effectively, can improve the customer relationships, image in the market and ability to reach the most targeted audience, while helping grow the bottom line. Alsmadi (2007) while investigating the environmental behaviour of Jordanian consumers reveals a high level of environmental conscience. Unfortunately however this positive tendency and preference in the "green" products did not appear to have any effect on the final decision, obviously because these consumers had a stronger faith in the traditional products and a small confidence in the green statements. The above obstacles were further strengthened by the lack of environmental conscience by a lot of enterprises and the existence of a large scale of prices for the same product, many of which included an impetuous estimate of environmental responsibility. The same phenomenon has been presented in other researches too (Ottman, 2004; Donaldson, 2005; Cleveland et al, 2005). Consumers are substantially aware about green products; however applying green marketing practices in business operations is not an easy task (Juwaheer, 2005). Donaldson (2005) in his study realized in the Great Britain that in general the ecological attitude of consumers changed positively. This study reported the strong faith of consumers in the known commercial brands and in the feeble behaviour referring to the "green" claims, which was the main cause behind the consuming failure to interpret their concerns beyond the environment in their behavior.
Sanjay K. Jain & Gurmeet Kaur (2004) in their study of environmentalism which had fast emerged as a worldwide phenomenon discussed business firms too have risen to the occasion and have started responding to environmental challenges by practicing green marketing strategies. Green consumerism has played a catalytic role in ushering corporate environmentalism and making business firms green marketing oriented. Based on the data collected through a field survey, the paper made an assessment of the extent of environmental awareness, attitudes and behaviour prevalent among consumers in India. Karna, J., Hansen, E. & Juslin, H. (2003) interpreted that proactive marketers are the most genuine group in implementing environmental marketing voluntarily and seeking competitive advantage through environmental friendliness. The results also give evidence that green values, environmental marketing strategies, structures and functions are logically connected to each other as hypothesized according to the model of environmental marketing used to guide this study. Oyewole, P. (2001) in his paper presented a conceptual link among green marketing, environmental justice, and industrial ecology. It argues for greater awareness of environmental justice in the practice for green marketing. A research agenda is finally suggested to determine consumer's awareness of environmental justice, and their willingness to bear the costs associated with it. Prothero, A. & Fitchett, J.A. (2000) argued that greater ecological enlightenment can be secured through capitalism by using the characteristics of commodity culture to further progress environmental goals. Marketing not only has the potential to contribute to the establishment of more sustainable forms of society but, as a principle agent in the operation and proliferation of commodity discourse, also has a considerable responsibility to do so. Jacquelyn Ottman, (1998) suggests that from an organizational standpoint, all aspects of marketing including new product development and communications should be integrated with environmental considerations. This holistic view of Green Marketing suggests that not only the suppliers and retailers, but the new stakeholders including educators, community members, regulators, and NGOs should also be taken into purview. Environmental issues should not be compromised to satisfy primary customer needs. Organization operating green practices in their processes and products is considered as environmentally friendly by the consumers and they prefer to purchase the products of the organization that are marketing themselves as green organizations.
Kilbourne, W.E. (1998) discussed the failure of green marketing to move beyond the limitations of the prevailing paradigm. The author identified areas that must be examined for their effect in the marketing/environment relationship, namely economic, political and technological dimensions of the cultural frame of reference. Prothero, A. (1998) introduced several papers discussed in the July 1998 issue of 'Journal of Marketing Management' focusing on green marketing. This included a citation of the need to review existing literature on green marketing, an empirical study of United States and Australian marketing managers, a description of what a green alliance look like in practice in Great Britain, ecotourism and definitions of green marketing. Mintel (1995) found a significant gap between consumers concern and actual green purchasing. It is found that still there are considerable barriers towards the diffusion of more ecologically oriented consumption styles. Firms are also forced to become more socially responsible due to the laws laid by the government towards the protection of the environment. Firms are also pressurized by the environmental activities adapted by competitors that demand the firms to change their marketing activities to environmental marketing activities. One of the factors identified that affects the purchase of green product is its high price in comparison with traditional product. Price of the product can be reduced by properly designed environmental standards. Environmental standards can trigger innovations that lower the cost of the product or improve its value. Such innovation will allow the companies to use a range of inputs more productively-from raw materials to energy to labor – thus offsetting the cost of improving environmental impact and hence enhanced resource productivity will make companies more competitive. Innovation will play a lead role in sustainable development for the companies to be competitive and resisting innovations will lead to loss of competitiveness in today’s global economy (Michael Porter and Claas van der Linder, 1995). According to Michael J Polonsky, environmental marketing has been perceived as an opportunity by the organizations to achieve their objectives (stated by Keller 1987, Shearer 1990). It was believed that organizations have moral obligation to serve the society in more environmental friendly way (Davis 1992, Freeman and Liedtka 1991, Keller 1987, Shearer 1990). First consumer survey was conducted by Vandermerwe and Ollif (1990) stating that more then 92% European multinationals clamed to have changed their products in response to
green concern. Green products introduction increased by more then double to 11.4% of all new household products in the USA between 1989 and 1990 and continued to rise to 13.4% in 1991. In spite of its growing popularity, the green marketing movement faced serious setbacks in the late 1980s (Peattie and Crane 2005). A 2001 survey conducted by Roper indicates that during the 1990’s approximately 2/3 of all consumers believed that environmental protection and economic development can go hand in hand. While perception is important, actual behavior is crucial to market success. A report (conducted by Mintel 1995) showed only a very slight increase in green consumer since 1990 and a significant gap between concern and actual purchasing. Davidson et al. (1985) found that the consumers’ attitude is associated with the knowledge and personal experience they possess. However inconsistencies were found among the relationship between consumers’ attitude and their behavior when it comes to green consumerism. Here we can say that a plethora of literature is coming on explaining the concept of Green Marketing and various phenomena related to the concept. Still there is a lack of proper perceptive on consumer behavior towards their response to Green products.
2.2 Objectives
To find out the customer’s attitude and perception towards green marketing.
To investigate the level of awareness of consumers about green products and practices.
To identify the brands, consumer associate with green marketing practices.
To identify the factors that influences the customer persuasion to buy green products.
To analyses the level of satisfaction of green product customers through 5 point scaling techniques.
2.3 Research Methodology Research Methodology is the systematic, theoretical analysis of the methods applied to a field of study. It comprises the theoretical analysis of the body of methods and principles
associated with a branch of knowledge. Typically, it encompasses concepts such as paradigm, theoretical model, phases and quantitative or qualitative techniques. The methodology is the general research strategy that outlines the way in which research is to be undertaken and, among other things, identifies the methods to be used in it. These methods, described in the methodology, define the means or modes of data collection or, sometimes, how a specific result is to be calculated. Methodology does not define specific methods, even though much attention is given to the nature and kinds of processes to be followed in a particular procedure or to attain an objective.
2.3.1 Research design Research design is defined as a framework of methods and techniques chosen by a researcher to combine various components of research in a reasonably logical manner so that the research problem is efficiently handled. It provides insights about “how” to conduct research using a particular methodology. It is the set of methods and procedures used in collecting and analyzing measures of the variables specified in the research problem research. The design of a study defines the study type (descriptive, correlation, semi-experimental, experimental, review, meta-analytic) and sub-type (e.g., descriptive-longitudinal case study). Research problem, hypotheses, independent and dependent variables, experimental design and, if applicable, data collection methods and a statistical analysis plan. A research design is a framework that has been created to find answers to research questions.
Research design method used: Descriptive
2.3.2 Types of Data Primary Data:
These are the data which are collected from some primary sources i.e., a source of
origin where the data generate.
These are collected for the first time by an investigator or an agency for any statistical analysis.
“Data which are gathered originally for a certain purpose are known as primary data.” — Horace Secrist
“Primary data is the data observed or collected directly from first-hand experience.”
Merits: 1. It has high degree of accuracy. 2. For some enquiries, secondary data is not available. 3. These are more reliable. 4. It needs no extra precautions. Demerits: 1. It requires lot of time. 2. It needs much money. 3. These data can be obtained through skilled persons only. 4. Sometimes, these data are not available altogether.
Collection of Primary Data:Primary data is the present study, collected first hand from the target segment through questionnaire i.e. the customers or common people. For collecting primary data I have used Questionnaire, Survey.
Secondary Data:
These are the data which are collected from some secondary source i.e. the source of reservation storage where the data is collected by one person and used by other agency. These are collected as primary data and used by other as secondary data.
“The data which are used in an investigation, but which have been gathered originally by someone else for some other purpose are known as secondary data.” — Blair.
“Published data and the data collected in the past or other parties is Called secondary data”
Merits: 1. It is easy to collect. 2. Time and money is saved. 3. Sometimes primary data cannot be obtained. 4. Some data are more reliable than primary. Demerits: 1. These are not reliable as primary data. 2. Extra caution is needed to use these data. 3. All types of data are not available. 4. Purpose of original collection may have been different. Collection of Secondary Data:Secondary data means which is already available or published. I have collected secondary data from Internet (related websites), Research Papers and Books etc.
2.3.3 Sampling: Sampling is a statistical procedure that is concerned with the selection of the individual observation; it helps us to make statistical inferences about the population. In sampling, we assume that samples are drawn from the population and sample means and population means are equal. A population can be defined as a whole that includes all items and characteristics of the research taken into study. However, gathering all this information is time consuming and costly. We therefore make inferences about the population with the help of samples. A) Random sampling:
In data collection, every individual observation has equal probability to be selected into a sample. In random sampling, there should be no pattern when drawing a sample.
Significance: Significance is the percent of chance that a relationship may be found in sample data due to luck. Researchers often use the 0.05% significance level.
TYPES OF RANDOM SAMPLING:
Simple random sampling: By using the random number generator technique, the
researcher draws a sample from the population called simple random sampling. Simple random samplings are of two types. One is when samples are drawn with replacements, and the second is when samples are drawn without replacements.
Stratified simple random sampling: In stratified simple random sampling, a proportion from strata of the population is selected using simple random sampling. For example, a fixed proportion is taken from every class from a school.
Multistage stratified random sampling: In multistage stratified random sampling, a proportion of strata is selected from a homogeneous group using simple random sampling. For example, from the nth class and nth stream, a sample is drawn called the multistage stratified random sampling.
Cluster sampling: Cluster sampling occurs when a random sample is drawn from certain aggregation geographical groups.
B) Non-random sampling: Non-random sampling is widely used in qualitative research. Random sampling is too costly in qualitative research. Types of non-random sampling:
Availability sampling: Availability sampling occurs when the researcher selects the sample based on the availability of a sample. This method is also called haphazard sampling. E-mail surveys are an example of availability sampling.
Quota sampling: This method is similar to the availability sampling method, but with the constraint that the sample is drawn proportionally by strata.
Expert sampling: This method is also known as judgment sampling. In this method, a researcher collects the samples by taking interviews from a panel of individuals known to be experts in a field.
Probability and non-probability sampling:
Probability sampling is the sampling technique in which every individual unit of the population has greater than zero probability of getting selected into a sample.
Non-probability sampling is the sampling technique in which some elements of the population have no probability of getting selected into a sample.
Respondent A respondent is a person who replies to something, especially one supplying information for a questionnaire. In this study, respondents are the customers who are using green products.
2.3.4 Population All the students of Sanjivani Group of Institutes, who are studying in MBA I & II year and BBM I, II & III year. Total population is 306. To decide the population I have taken help of data given by college. Population
Total no.
%
Sample
MBA I Yr.
60
20
33
MBA II Yr.
60
20
33
BBM I Yr.
88
29
48
BBM II Yr.
74
24
40
BBM III Yr.
24
8
13
TOTAL
306
100
167
(Source: Data Provided By Sanjivani Group of Institutes)
2.3.5 Sample size A sample of 167 respondents was selected for the survey according to Morgan’s Table.
2.3.6 Sampling Method Samples can be either probability samples or non-probability samples. With probability samples each element has a known probability of being included in the sample but the nonprobability samples do not allow the researcher to determine this probability. Probability samples are those based on simple random sampling, systematic sampling, stratified sampling, cluster/area sampling whereas non-probability samples are those based on convenience sampling, judgement sampling and quota sampling techniques.
Sampling Method: - Non-Probability Sampling Sampling Technique used: - Convenience Sampling
2.3.7 Instruments for Data Collection: Questionnaire 2.3.8 Tools used for Data analysis: MS-Excel
2.3.9 Scope and Limitations of the Study
Scope of the study
Researcher has collected data only from students of Management Studies (MBA & BBA) of Sanjivani Group of Institutes which is situated in Kopargaon.
Researcher has collected primary data in the month of February 2019 only.
Limitations:
Duration given for completion of project it is not sufficient for the complete analysis and study.
It is very difficult to find out the people, who are aware about green products and green marketing,
The sources related with secondary data about this problem are limited.
Data Analysis 3.1 Analysis of Gender Wise Composition of Customers. Table 3.1
Sr. No.
Gender
Frequency
Percentage %
1
Female
65
38.9
2
Male
102
61.1
Total
167
100 (Source – Survey)
Chart 3.1
Gender
65, 39% Female
Male 102, 61%
Interpretation:
Majority of Respondents were Male i.e. 61%.
39% Respondents were Female.
3.2 Analysis of Age Wise Composition of Customers. Table 3.2 Sr. No.
Age
Frequency
Percentage %
1
Below 18
22
13.2
2
18-25 Years
138
82.6
3
Above 25
7
4.2
Total
167
100 (Source – Survey)
Chart 3.2
Age 7, 4%
22, 13%
Below 18 18-25 Years Above 25
138, 83%
Interpretation:
83% Respondents having age between 18 to 25 years.
Only 4% Respondents having age above 25 years.
3.3 Awareness of Green Marketing Practices Table 3.3 Sr. No.
Particular
Frequency
Percentage %
1
Yes
146
87.4
2
No
21
12.6
Total
167
100 (Source – Survey)
Chart 3.3
Awareness of Green Marketing Practices 21, 13%
Yes No
146, 87%
Interpretation:
87% Respondents were aware about “Environment Friendly or Green Marketing” Products/Practices.
3.4 Analysis of Understanding from 'Green Products. Table 3.4 Sr. No.
Particulars
Frequency
Percentage %
1
Green colored products
34
20.4
2
Natural / organic products
99
59.3
3
Recycled / recyclable products
104
62.3
4
Vegetarian products
22
13.2
5
Ayurvedic / Herbal products
43
25.7
6
Highly priced products
9
5.4
7
Energy saving products
59
35.3 (Source – Survey)
Chart 3.4
Understanding from 'Green Products' 120 99
100
104
80 59
60 43 40
34 22
20
9
0 Green colored products
Natural / organic products
Recycled / recyclable products
Vegetarian products
Ayurvedic / Herbal products
Highly priced Energy saving products products
Interpretation:
62.3% Respondents understand Green Products as ‘Recycled / recyclable products’.
59.3% Respondents understand Green Products as ‘Natural / organic products’.
Only 9 Respondents understand Green Products as ‘Highly priced products’.
3.5 Analysis of Meaning of Symbol Table 3.5
Sr. No.
Particulars
Frequency
Percentage %
1
Vegetarian
7
4.2
2
Natural / organic
22
13.2
3
Recycled / recyclable
115
68.9
4
Ayurvedic / Herbal
7
4.2
5
Fresh
3
1.8
6
Healthy
6
3.6
7
Good quality
7
4.2
Total
167
100 (Source – Survey)
Chart 3.5
Meaning of Symbol 3, 2%
6, 4% 7, 4% 7, 4%
7, 4% 22, 13%
Vegetarian Natural / organic Recycled / recyclable Ayurvedic / Herbal Fresh
115, 69%
Healthy Good quality
Interpretation:
According to 69% Respondents, the above Symbol signifies ‘Recycled or Recyclable’.
3.6 Do you consider your effect on the environment as a consumer before purchasing general day to day products? Table 3.6 Sr. No.
Particular
Frequency
Percentage %
1
Yes
94
56.3
2
No
15
9
3
Not Sure
58
34.7
Total
167
100 (Source – Survey)
Chart 3.6
Consideration of Consumers about Environment 58, 35% Yes No 94, 56%
Not Sure
15, 9%
Interpretation:
56% Respondents consider their effect on the environment as a consumer before purchasing general day to day products.
58 Respondents not sure about their effect on the environment as a consumer before purchasing general day to day products.
3.7 Analysis of Green marketing products Customers using in their home Table 3.7 Sr. No.
Particulars
Frequency
Percentage %
1
Electronic items
59
35.3
2
Food items
81
48.5
3
Consumable items
65
38.9
4
Home appliances
39
23.4 (Source – Survey)
Chart 3.7
Green Marketing Products Home appliances
39
Consumable items
65
Food items
81
Electronic items
59
0
10
20
30
40
50
60
70
80
Interpretation:
Food items are major green marketing products which customers are using in their home.
Only 39 Respondents using Home appliances in their home which are green marketing products.
90
3.8 Analysis of Energy saving electronics customers using currently Table 3.8 Sr. No.
Particulars
Frequency
Percentage %
1
CFL Bulb
92
55.1
2
Solar water heater
77
46.1
3
Solar cooker
48
28.7
4
Solar electric products
30
18
5
Five star energy saving rated Air - conditioner
30
18
6
Five star energy saving rated Television
32
19.2
7
Five star energy saving rated Fridge
47
28.1
8
Electric bike
17
10.2
9
Can’t say
9
5.4 (Source – Survey)
Chart 3.8
Energy Saving Electronics Can’t say
9
Electric bike
17
Five star energy saving rated Fridge
47
Five star energy saving rated Television
32
Five star energy saving rated Air - conditioner
30
Solar electric products
30
Solar cooker
48
Solar water heater
77
CFL Bulb
92 0
10
20
30
40
50
60
70
80
90
100
Interpretation:
55.1% Customers are using CFL Bulb as Energy saving electronics currently.
46.1% Customers are using Solar water heater as Energy saving electronics currently
3.9 Analysis of Influencing factors for purchasing any green products Table 3.9 Sr. No.
Particulars
Frequency
Percentage %
1
Advertisement
121
72.5
2
Friends
75
44.9
3
Relatives
26
15.6
4
Neighbour
16
9.6
5
Colleagues
23
13.8 (Source – Survey)
Chart 3.9
Influencing Factors 140
121
120 100 75 80 60 26
40
16
23
20 0 Advertisement
Friends
Relatives
Neighbour
Colleagues
Interpretation:
According to 72.5% Respondents, Advertisement is the key Influencing factor for purchasing any green products.
A neighbour is the least Influencing factor for purchasing any green products.
3.10 Analysis of Media for Awareness of Green Marketing Products Table 3.10 Sr. No.
Particulars
Frequency
Percentage %
1
Television
122
73.1
2
Dailies & Magazine
60
35.9
3
Friends
60
35.9
4
Relatives
29
17.4
5
Neighbours
13
7.8 (Source – Survey)
Chart 3.10
Media for Awareness of Green Marketing Products 122
140 120 100 80
60
60
60
29
40
13
20 0 Television
Dailies & Magazine
Friends
Relatives
Neighbours
Interpretation:
73.1% Customers got aware through Television. So, Television plays an important role for Awareness of Green Marketing Products.
Only 7.8% Customers got aware about Green Marketing Products through Neighbours.
3.11 Analysis of Sources of Green Marketing Products Table 3.11 Sr. No.
Particulars
Frequency
Percentage %
1
Retail Stores
110
65.9
2
Departmental stores
65
38.9
3
Show rooms
55
32.9
4
Petty shops
22
13.2 (Source – Survey)
Chart 3.11
Sources of Green Marketing Products 22
Petty shops
55
Show rooms
65
Departmental stores
110
Retail Stores 0
20
40
60
80
100
120
Interpretation:
According to 65.9% Respondents, Retail Stores are the major Source of Green Marketing Products.
Petty Shops are the least preferred source of Green Marketing products.
3.12 Analysis of Reasons for purchasing and using Green Products Table 3.12 Sr. No.
Particulars
Frequency
Percentage %
1
Eco-friendly
121
72.5
2
Healthy
70
41.9
3
Natural products
64
38.3
4
Environment
78
46.7
5
Avoiding Global Warming
58
34.7
6
Cost
22
13.2
65
38.9
7
Renewable & Recyclable
Product
(Source – Survey)
Chart 3.12
Reasons for purchasing and using Green Products 65
Renewable & Recyclable Product 22
Cost
58
Avoiding Global Warming
78
Environment 64
Natural products
70
Healthy
121
Eco-friendly 0
20
40
60
80
100
120
140
Interpretation:
According to 72.5% Respondents, Green Products are Eco-friendly and this is the main reason for purchasing and using Green Products.
Environment is another major reason for purchasing and using Green Products.
3.13 Analysis of Attitude towards green products Table 3.13 Sr. No.
Particulars
Frequency
Percentage %
1
Very good
96
57.5
2
Good
52
31.1
3
Moderate
11
6.6
4
Poor
6
3.6
5
Very Poor
2
1.2
Total
167
100 (Source – Survey)
Chart 3.13
Attitude towards green products 120 100
96
80 52
60 40 20
11
6
2
Poor
Very Poor
0 Very good
Good
Moderate
Interpretation:
57.5% Respondents have very good attitude towards green products.
Only 2 Respondents found to have very poor attitude towards green products.
3.14 Analysis of Perception towards green products Table 3.14 Sr. No.
Particulars
Frequency
Percentage %
1
Very good
81
48.5
2
Good
55
32.9
3
Moderate
22
13.2
4
Poor
6
3.6
5
Very Poor
3
1.8
Total
167
100 (Source – Survey)
Chart 3.14
Perception towards green products 90
81
80 70 55
60 50 40 30
22
20 6
10
3
0 Very good
Good
Moderate
Poor
Very Poor
Interpretation:
48.5% Respondents have very good Perception towards green products.
Only 1.8% Respondents has very poor Perception towards green products.
3.15 Analysis of Brand Association Table 3.15 Sr. No.
Particulars
Frequency
Percentage %
1
Bajaj CFL
83
49.7
2
Indian Railways (paperless ticket
77
46.1
3
Nokia
23
13.8
4
Philips CFL
73
43.7
5
Nerolac Paints
28
16.8
6
Exide Green Batteries
27
16.2
7
Godrej
60
35.9 (Source – Survey)
Chart 3.15
Brand Association 60
Godrej
Exide Green Batteries
27
Nerolac Paints
28 73
Philips CFL 23
Nokia
77
Indian Railways (paperless ticket
83
Bajaj CFL 0
10
20
30
40
50
60
70
80
90
Interpretation:
According to 49.7% Respondents, Bajaj CFL is the brand they associate with Green Marketing Practices the most.
46.1% Respondents associate Indian Railways as a brand with Green Marketing Practices.
3.16 Organizations manufacturing/promoting green products are really concerned about the environment. Table 3.16 Sr. No.
Particulars
Frequency
Percentage %
1
Strongly Disagree
11
6.6
2
Somewhat Disagree
15
9
3
Neutral
74
44.3
4
Somewhat Agree
52
31.1
5
Strongly Agree
15
9
Total
167
100 (Source – Survey)
Chart 3.16
Organizations manufacturing/promoting green products are really concerned about the environment. 15, 9%
11, 7% 15, 9% Strongly Disagree
52, 31%
Somewhat Disagree Neutral
Somewhat Agree 74, 44%
Strongly Agree
Interpretation:
44.3% Respondents remained Neutral on the statement ‘Organizations manufacturing/promoting green products are really concerned about the environment’.
6.6% Respondents were strongly disagreed with the statement’ Organizations manufacturing/promoting green products are really concerned about the environment’.
3.17 Consumers have become more concerned about protection of environment. Table 3.17 Sr. No.
Particulars
Frequency
Percentage %
1
Strongly Disagree
7
4.2
2
Somewhat Disagree
15
9
3
Neutral
62
37.1
4
Somewhat Agree
62
37.1
5
Strongly Agree
21
12.6
Total
167
100 (Source – Survey)
Chart 3.17
Consumers have become more concerned about protection of environment. 21, 13%
7, 4%
15, 9% Strongly Disagree Somewhat Disagree Neutral
62, 37%
62, 37%
Somewhat Agree Strongly Agree
Interpretation:
37.1% Respondents somewhat agreed that Consumers have become more concerned about protection of environment
4.1% Respondents strongly disagreed that Consumers have become more concerned about protection of environment
3.18 If a Green Product is available in a product category often purchased, I would….. Table 3.18 Sr. No.
Particulars
Frequency
Percentage %
1
Definitely Not Buy
5
3
2
Probably Not Buy
10
6
3
Not Sure
27
16.2
4
Probably Buy
77
46.1
5
Definitely Buy
48
28.7
Total
167
100 (Source – Survey)
Chart 3.18
If a Green Product is available in a product category often purchased, I would….. 5, 3%
10, 6%
48, 29%
27, 16% Definitely Not Buy Probably Not Buy
Not Sure Probably Buy Definitely Buy
77, 46%
Interpretation:
46.1% Respondents believed that If a Green Product is available in a product category often purchased, They would probably buy it.
3.19 While purchasing the product, I prefer green products over conventional products. Table 3.19 Sr. No.
Particulars
Frequency
Percentage %
1
Strongly Disagree
5
3
2
Somewhat Disagree
10
6
3
Neutral
50
29.9
4
Somewhat Agree
63
37.7
5
Strongly Agree
39
23.4
Total
167
100 (Source – Survey)
Chart 3.19
While purchasing the product, I prefer green products over conventional products. 5, 3%
10, 6%
39, 23%
50, 30%
Strongly Disagree Somewhat Disagree Neutral Somewhat Agree Strongly Agree
63, 38%
Interpretation:
37.7% Respondents somewhat agreed that While purchasing the product, they prefer green products over conventional products.
Only 3% Respondents strongly disagreed that while purchasing the product, they prefer green products over conventional products.
3.20 I feel that green products are priced higher as compared to conventional product. Table 3.20 Sr. No.
Particulars
Frequency
Percentage %
1
Strongly Disagree
12
7.2
2
Somewhat Disagree
22
13.2
3
Neutral
64
38.3
4
Somewhat Agree
49
29.3
5
Strongly Agree
20
12
Total
167
100 (Source – Survey)
Chart 3.20
I feel that green products are priced higher as compared to conventional product. 20, 12%
12, 7% 22, 13% Strongly Disagree Somewhat Disagree Neutral
49, 30%
Somewhat Agree Strongly Agree 64, 38%
Interpretation:
38.3% Respondents found to remain Neutral on the statement ‘I feel that green products are priced higher as compared to conventional product.’ Means they are not really sure about the high prices of Green Products.
3.21 I feel that price of green product affects my purchase behaviour. Table 3.21 Sr. No.
Particulars
Frequency
Percentage %
1
Strongly Disagree
10
6
2
Somewhat Disagree
18
10.8
3
Neutral
49
29.3
4
Somewhat Agree
72
43.1
5
Strongly Agree
18
10.8
Total
167
100 (Source – Survey)
Chart 3.22
I feel that price of green product affects my purchase behaviour. 18, 11%
10, 6% 18, 11% Strongly Disagree Somewhat Disagree Neutral
72, 43%
49, 29%
Somewhat Agree Strongly Agree
Interpretation:
43.1% Respondents somewhat agreed that price of green product affects their purchase behaviour.
Whereas according to 6% Respondents, price of green product doesn’t affect their purchase behaviour.
3.22 Analysis of Factors affecting the purchase of green products Table 3.22 Sr. No.
Particulars
1
Product Price
Frequency
Percentage %
77
46.1
82
49.1
85
50.9
44
26.3
39
23.4
Awareness about Green 2
Products Availability of Green
3
Products
4
Past Experience Information provided on product
5
(Source – Survey) Chart 3.22
Factors affecting the purchase of green products 39
Information provided on product
44
Past Experience
85
Availability of Green Products
82
Awareness about Green Products 77
Product Price
0
10
20
30
40
50
60
70
80
90
Interpretation:
According to 50.9% Customers, the most key factor which affects the purchase of Green products is Availability of Green Products.
The least affecting factor on the purchase of Green products is Information provided on product.
3.23 Analysis of Level of satisfaction towards green products Table 3.23 Very High
High
Moderate
Low
Very Low
Quality
65
76
21
3
2
Cost
26
71
56
12
2
Availability
27
65
59
13
3
After Sales Service
36
71
44
14
2
Comfortable of the product
40
78
34
12
3
Packaging of the green products
41
84
29
10
3
Goodwill of the green product brand
60
71
27
7
2
(Source – Survey) Chart 3.23
Level of satisfaction towards green products 90 80
84 78
76 71
70
71
71
65
60 50
40 Very High 30
High
20
Moderate
10
Low
0
Very Low
Interpretation:
According to 76 Respondents, Level of satisfaction towards green products is HIGH in terms of Quality.
According to 71 Respondents, Level of satisfaction towards green products is HIGH in terms of Cost.
According to 65 Respondents, Level of satisfaction towards green products is HIGH in terms of Availability.
According to 71 Respondents, Level of satisfaction towards green products is HIGH in terms of After Sales Service.
According to 78 Respondents, Level of satisfaction towards green products is HIGH in terms of Comfortable of the product.
According to 84 Respondents, Level of satisfaction towards green products is HIGH in terms of Packaging of the green products.
According to 71 Respondents, Level of satisfaction towards green products is HIGH in terms of Goodwill of the green product brand. .
Findings:
87% Respondents were aware about “Environment Friendly or Green Marketing” Products/Practices.
62.3% Respondents understand Green Products as ‘Recycled / recyclable products’.
59.3% Respondents understand Green Products as ‘Natural / organic products’.
Only 9 Respondents understand Green Products as ‘Highly priced products’.
According to 69% Respondents, the above Symbol signifies ‘Recycled or Recyclable’.
56% Respondents consider their effect on the environment as a consumer before purchasing general day to day products.
58 Respondents not sure about their effect on the environment as a consumer before purchasing general day to day products.
Food items are major green marketing products which customers are using in their home.
Only 39 Respondents using Home appliances in their home which are green marketing products.
55.1% Customers are using CFL Bulb as Energy saving electronics currently.
46.1% Customers are using Solar water heater as Energy saving electronics currently
According to 72.5% Respondents, Advertisement is the key Influencing factor for purchasing any green products.
A neighbour is the least Influencing factor for purchasing any green products.
73.1% Customers got aware through Television. So, Television plays an important role for Awareness of Green Marketing Products.
Only 7.8% Customers got aware about Green Marketing Products through Neighbours.
According to 65.9% Respondents, Retail Stores are the major Source of Green Marketing Products.
Petty Shops are the least preferred source of Green Marketing products.
According to 72.5% Respondents, Green Products are Eco-friendly and this is the main reason for purchasing and using Green Products.
Environment is another major reason for purchasing and using Green Products.
57.5% Respondents have very good attitude towards green products.
Only 2 Respondents found to have very poor attitude towards green products.
48.5% Respondents have very good Perception towards green products.
Only 1.8% Respondents has very poor Perception towards green products.
According to 49.7% Respondents, Bajaj CFL is the brand they associate with Green Marketing Practices the most.
46.1% Respondents associate Indian Railways as a brand with Green Marketing Practices.
44.3%
Respondents
remained
manufacturing/promoting
green
Neutral
on
the
statement
products
are
really
‘Organizations
concerned
about
the
environment’.
6.6% Respondents were strongly disagreed with the statement’ Organizations manufacturing/promoting
green
products
are
really
concerned
about
the
environment’.
37.1% Respondents somewhat agreed that Consumers have become more concerned about protection of environment
4.1% Respondents strongly disagreed that Consumers have become more concerned about protection of environment
46.1% Respondents believed that If a Green Product is available in a product category often purchased, They would probably buy it.
37.7% Respondents somewhat agreed that While purchasing the product, they prefer green products over conventional products.
Only 3% Respondents strongly disagreed that while purchasing the product, they prefer green products over conventional products.
38.3% Respondents found to remain Neutral on the statement ‘I feel that green products are priced higher as compared to conventional product.’ Means they are not really sure about the high prices of Green Products.
43.1% Respondents somewhat agreed that price of green product affects their purchase behaviour.
Whereas according to 6% Respondents, price of green product doesn’t affect their purchase behaviour.
According to 50.9% Customers, the most key factor which affects the purchase of Green products is Availability of Green Products.
The least affecting factor on the purchase of Green products is Information provided on product.
According to 76 Respondents, Level of satisfaction towards green products is HIGH in terms of Quality.
According to 71 Respondents, Level of satisfaction towards green products is HIGH in terms of Cost.
According to 65 Respondents, Level of satisfaction towards green products is HIGH in terms of Availability.
According to 71 Respondents, Level of satisfaction towards green products is HIGH in terms of After Sales Service.
According to 78 Respondents, Level of satisfaction towards green products is HIGH in terms of Comfortable of the product.
According to 84 Respondents, Level of satisfaction towards green products is HIGH in terms of Packaging of the green products.
According to 71 Respondents, Level of satisfaction towards green products is HIGH in terms of Goodwill of the green product brand.
Conclusion From this Dissertation Project, It can be concluded that Consumers’ level of awareness about green products found to be high. Television remains leading source of information for most of the respondents. Responses were on moderate positive level and we can conclude that consumers are not skeptic about green claims of the organizations and consumers are concerned about the present and future state of environment signifying need for green products and practices. Due to increased awareness and concern consumer may prefer green products over conventional products to protect the environment. The consumers are concerned about the state of environment and expect the organizations to employ green practices towards the protection of environment. Consumers have shown positive attitude towards green products at the same time they are concerned with the availability and price of such products. Most of the Respondents were satisfied with the performance of Green products. The study has implications for marketers as well as consumers and makes a good case for start of an era of green marketing. The study since focused on a limited geographical area has limited generalizability but provides good insights regarding behaviour of consumers towards green products. The study can be replicated at a larger scale to get more insights into the behaviour of consumers and understand more about green phenomenon. Green marketing is a tool for protecting the environment for the future generation. Now this is the right time to select “Green Marketing” globally. It will come with drastic change in the world of business if all nations will make strict roles because green marketing is essential to save world from pollution. Green marketing is a tool for protecting the environment for the future generation.
Suggestions
Television advertisements should be utilized more for reaching out to the consumers regarding green products and practices. Advertising appeals using green products and practices are likely to move emotions and result in persuasion
The marketing communication regarding green practices need to focus more on theme and message.
Marketers should make the green products available to the consumers for their consumption as customers have shown willingness to buy green products if it is available.
Consumers may purchase the green product if marketers can make them aware about the benefits of the green products which consumers perceive as priced higher as compared to that of traditional products.
Marketers can come up with new green products in economical segment and communicate the benefits to the consumers.
There is a need of green retail shops in all cities.
Learning’s from Dissertation
The study undertaken has helped Researcher to understand the concept of Green Marketing Products and Practices.
The Study aided Researcher to find out the customer’s attitude and perception towards green marketing.
The Study assisted Researcher to investigate the level of awareness of consumers about green products and practices.
The Study has helped Researcher to identify the brands, consumer associate with green marketing practices.
The study also gave Researcher knowledge about the factors that influences the customer persuasion to buy green products.
Further Researcher came to know about the level of satisfaction of green product customers.
Bibliography: Research Papers:
Bhatia, Mayank Jain, Amit “ Green Marketing: A Study of Consumer Perception and Preferences in India” Electronic Green Journal, 1(36)
Prof. Jaya Tiwari “Green marketing in India: An Overview”, IOSR Journal of Business and Management (IOSR-JBM)
R. Maheswari, G. Sakthivel “Customer’s attitude and awareness towards green products with reference to Coimbatore –An analytical study” IJMRD 2015; 2(1): 156-162
Vinod.S “A Study on Customers Perception towards Green Marketing and Products with Special Reference to Thiruvananthapuram City” International Journal of Recent Research in Commerce Economics and Management (IJRRCEM) Vol. 3, Issue 2, pp: (28-33), Month: April 2016 - June 2016.
Books:
Kothari C.R., Business Research Methodology, Second Revised Edition, New Age International Publications.
Appendix Questionnaire: Name:Gender: a. Female b. Male Age: a. Below 18 b. 18-25 Years c. Above 25 Have you ever heard of “Environment Friendly or Green Marketing” Products/Practices? a. Yes b. No What do you understand from “green products”? (Tick more than one) a. Green colored products b. Natural / organic products c. Recycled / recyclable products d. Vegetarian products e.
Ayurvedic / Herbal products
f.
Highly priced products
g. Energy saving products
What does the symbol on the right signify? (Tick any one) a. Vegetarian b. Natural / organic c. Recycled / recyclable
d. Ayurvedic / Herbal e. Fresh f. Healthy g. Good quality Do you consider your effect on the environment as a consumer before purchasing general day to day products? a. Yes b. No c. Not Sure What are the green marketing products you are using in your home? a. Electronic items b. Food items c. Consumable items d. Home appliances
Choose the energy saving electronics from following which are used by you currently? (Tick more than one) a. CFL Bulb b. Solar water heater c. Solar cooker d. Solar electric products e. Five star energy saving rated Air - conditioner f. Five star energy saving rated Television g. Five star energy saving rated Fridge h. Electric bike i.
Can’t say
What are Influencing factors for purchasing any green products? a. Advertisement
b. Friends c. Relatives d. Neighbour e. Colleagues Awareness of Green marketing Products through a. Television b. Dailies & Magazine c. Friends d. Relatives e. Neighbours Sources of Green Marketing Products area. Retail Stores b. Departmental stores c. Show rooms d. Petty shops What are the reasons for purchasing and using Green Products? a. Eco-friendly b. Healthy c. Natural products d. Environment e. Avoiding Global Warming f. Cost g. Renewable & Recyclable Product Attitude towards green products a. Very good b. Good c. Moderate d. Poor e. Very Poor
Perception towards green products a. Very good b. Good c. Moderate d. Poor e. Very Poor
Which of the following brands do you associate with Green Marketing Practices? a. Bajaj CFL b. Indian Railways (paperless ticket) c. Nokia d. Philips CFL e. Nerolac Paints f. Exide Green Batteries g. Godrej
Organizations manufacturing/promoting green products are really concerned about the environment. a. Strongly Disagree b. Somewhat Disagree c. Neutral d. Somewhat Agree e. Strongly Agree Consumers have become more concerned about protection of environment? a. Strongly Disagree b. Somewhat Disagree c. Neutral d. Somewhat Agree e. Strongly Agree
If a Green Product is available in a product category often purchased, I would….. Definitely Not
Probably Not
Buy
Buy
Not Sure
Probably Buy
Definitely Buy
While purchasing the product, I prefer green products over conventional products. a. Strongly Disagree b. Somewhat Disagree c. Neutral d. Somewhat Agree e. Strongly Agree
I feel that green products are priced higher as compared to conventional product. a. Strongly Disagree b. Somewhat Disagree c. Neutral d. Somewhat Agree e. Strongly Agree
I feel that price of green product affects my purchase behaviour. a. Strongly Disagree b. Somewhat Disagree c. Neutral d. Somewhat Agree e. Strongly Agree
Following factors affect the purchase of green products? a. Product Price b. Awareness about Green Products c. Availability of Green Products d. Past Experience e. Information provided on product
Level of satisfaction towards green products in terms of Very High Quality Cost Availability After Sales Service Comfortable of the product Packaging of the green products Goodwill of the green product brand
High Moderate Low
Very Low